EUR/USD Price Forecast January 30, 2018, Technical Analysis

The EUR/USD pair fell a bit during the day on Monday, as we broke below the 72-hour moving average. By doing so, it looks as if we are going to continue to go lower, perhaps reaching down towards the 1.2275 handle which is an area that has been resistive in the past, so it should make a supportive level. The pair of course is likely to be noisy, mainly because there has been a longer-term uptrend, and I think that continues to be the case as the United States dollar struggles overall. If we can break above the 1.25 level significantly, the market should continue to go towards the 1.27 level next.

Pay attention to the US Dollar Index, as it moves inversely from this market. If it starts to break down, we will see buyers jumping into this market and going higher. The alternate scenario of course is that if we break down below the 1.22 handle, the market probably drops down to the 1.20 level next. That should be the massive support the market needs to hold, and if we don’t, then we would continue to see plenty of selling pressure and it would completely wiped out the uptrend that we had seen. I think the only thing you can count on is the volatility that is almost certain to come, but I think the biggest thing here is to jump in slowly, regardless of which direction you choose.

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